PayPal USD (PYUSD) Project Update

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Biggest Stories of 2025

• USD.AI integration and incentive program: PayPal and Permian Labs (developer of USD.AI) partnered to integrate PYUSD into USD.AI's infrastructure financing for AI, allowing AI companies to settle data-center capital expenditures and operational costs in PYUSD, with a one-year incentive program offering 4.5% yield on up to $1 billion in deposits starting in early January 2026 234. (December 18, 2025)
• PYUSD Savings Vault on Spark: PayPal launched a PYUSD Savings Vault on the decentralized lending platform Spark, advertising a 4.25% annual percentage yield (APY) and supporting a goal set in September 2025 to grow PYUSD deposits to $1 billion 5. (December 15, 2025)
• YouTube enables PYUSD payments: YouTube began enabling PYUSD payments for U.S.-based content creators, with PayPal managing the crypto operations on its behalf to reduce complexity 6. (December 12, 2025)
• November 2025 Reserves Report: Paxos released the November 2025 PYUSD Monthly Reserves Holding report, showing tokens outstanding of 3,847,610,644 PYUSD against total net assets of $3,858,115,385, backed by U.S. Treasury Collateralized Reverse Repurchase Agreements, Treasury Bills, and cash deposits 7. (December 23, 2025)
• PYUSD live on Stellar: PYUSD went live on the Stellar network, offering low fees and near-instant settlement, with LOBSTR Wallet running a limited-time campaign awarding a 10 PYUSD bonus to the first 4,500 eligible participants who swapped for and held at least 10 PYUSD 8. (November 21, 2025)
• October 2025 Reserves Report: Paxos released the October 2025 PYUSD Monthly Reserves Holding report, showing tokens outstanding of 2,814,793,868 PYUSD against total net assets of $2,824,669,787 9. (November 26, 2025)
• PayPal Ventures invests in Stable: PayPal Ventures invested in Stable, a new Layer 1 blockchain focused on stablecoin payments, to expand PYUSD's cross-chain utility on Stablechain, leveraging LayerZero technology for cross-chain interoperability and targeting emerging markets 1011. (September 22, 2025)
• September 2025 Reserves Report: Paxos released the September 2025 PYUSD Monthly Reserves Holding report, showing tokens outstanding of 2,432,687,333 PYUSD against total net assets of $2,437,877,550 12. (October 30, 2025)
• October 15, 2025 Reserves Report: Paxos released a mid-month reserves report showing tokens outstanding of 2,638,336,904 PYUSD against total net assets of $2,652,728,424 13. (October 21, 2025)
• August 2025 Reserves Report: Paxos released the August 2025 PYUSD Monthly Reserves Holding report, showing tokens outstanding of 1,169,714,720 PYUSD against total net assets of $1,173,383,198 14. (October 1, 2025)
• July 2025 Reserves Report: Paxos released the July 2025 PYUSD Monthly Reserves Holding report, showing tokens outstanding of $1,037,124,620 against total net assets of $1,040,131,414 15. (August 28, 2025)
• Coinbase partnership eliminates trading fees: PayPal and Coinbase eliminated trading fees for PYUSD, allowing users to buy, sell, and redeem PYUSD 1:1 for USD without platform fees, while exploring new PYUSD use cases on DeFi platforms 16. (April 24, 2025)
• PYUSD rewards program announced: PayPal announced a PYUSD rewards program launching in Summer 2025, offering 3.7% annual interest on stablecoin holdings in PayPal and Venmo wallets, with rewards paid in PYUSD and accrued daily 17. (April 23, 2025)
• January 2025 Reserves Report: Paxos released the January 2025 PYUSD Monthly Reserves Holding report, showing tokens outstanding of 482,747,103 against total net assets of $484,456,701 18. (February 28, 2025)
• 20 million merchant target: PayPal announced its goal to have 20 million merchants using PYUSD by the end of 2025, planning to integrate PYUSD into its bill-pay product and Hyperwallet for mass payments, and to enable crypto settlements for PayPal checkouts by the end of 2025 1920. (February 26, 2025)
• 2025 expansion strategy: PayPal outlined plans to expand PYUSD integration in 2025, including integration into its Hyperwallet platform for global payments to freelancers and contractors, aiming to compete with USDT and USDC despite PYUSD's relatively low adoption 21. (February 27, 2025)